It’s Hard to Know If The Proposed 401(k) Tax Rule Will Hurt or Benefit Savers

All that said, it’s difficult to know whether we will be worse off on average if Congress eliminates the current 401(k) tax benefit, since any cost-benefit analysis depends on largely unknown future tax rates. Moreover, this is just a small part of a broader plan we haven’t seen yet, and so it’s best to withhold judgement until we can make a fair comparison between a final plan and current tax policy.